‘China shock’ hits Germany as Merz joins Beijing pilgrimage

South China Morning Post · Feb 26, 2026 · Collected from RSS

Summary

German Chancellor Friedrich Merz voiced concerns about Chinese industrial overcapacity after meeting President Xi Jinping, as he seeks to rein in a trade deficit that has grown fourfold since 2020. “This dynamic is not healthy,” Merz told reporters in Beijing on Wednesday, according to Reuters. He also highlighted “risks” from the close connections between the two countries, including problems suffered by German manufacturers last year when China tightened export controls on basic computer chips...

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